Egypt plans to import around a million barrels of oil from neighbouring Libya to make up for the loss of crude imports mainly from Kuwait because of Iran's restrictions of the Strait of Hormuz.
Egyptian authorities are expected to hammer out a deal with Libya in this regard, in their bid to offset effects from the US-Israel war on Iran and Iranian attacks on energy facilities in the Gulf region.
Libya will send two shipments of oil to Egypt each month, both containing around 1.2 million barrels of crude oil, according to media reports, quoting unnamed Egyptian officials .
The move comes as Egypt braces for an acute energy crisis because of the war, specialists said.
"The war threatens energy supplies to Egypt, opening the door for a real crisis," independent energy expert Ramadan Abul Ela said to The New Arab. "The rise in energy prices will drain Egypt's limited foreign currency reserves and raise the inflation induced by the surge in commodity prices in the local market," Abul Ela said.
The same crisis is forcing this energy-hungry nation to turn off the lights , a development that has angered the public and puts the prospects of millions of businesses of all sizes in total uncertainty, economists say. Eye of the storm Egypt has been one of the countries hit by the US-Israel-Iran war , even as it is not either party to it or has been attacked by any of its three belligerents.
Iranian attacks on Israel have initially caused the suspension of Israeli gas exports which cover between 15 and 20% of Egypt's needs, before Tel Aviv decided to resume the exports a short time later.
The closure of the Strait of Hormuz now makes it difficult for Egypt to get crude from Kuwait which had in early March declared " force majeure " and cut down crude oil output.
Egypt used to import 2 million barrels of crude oil from Kuwait each month before the war, which covered a sizeable portion of national consumption.
Available data about Egypt's production and consumption of crude oil vary from one source to another, but generally speaking, it produces between 19 million barrels of crude each month.
Nonetheless, this covers only 70% of consumption, which forces Cairo to strike import deals with other countries, which wears out its finances.
Apart from Kuwait, Egypt also imports a million barrels of crude from Saudi Arabia each month, but this has not come under any strain so far because of Riyadh's success to channel exports to the Port of Yanbu on the Red Sea.
As a measure, this ensures threat-free exports to Egypt which lies on the opposite side of the Saudi Red Sea coast, specialists said.
The disruption of oil supply and the resultant surge in commodity prices in the international market is affecting the day-to-day life of tens of millions of Egyptians who were suffering economically before the US-Israel war.
The decision of the authorities to turn off the lights by imposing the early closure of tens of thousands of businesses is set to negatively affect business activity and consequently affect economic growth, economists said.
"This is a wrong decision that will harm businesses and cause them losses," Rashad Abo, a professor of economics at Helwan University, told TNA .
He noted that some of the same businesses may have to lay off their workers or downsize their labour because of these losses.
"The same conditions will also slow down economic growth, scare investments away and impair the tourism sector as it prepares for a new season," he added.
The early closure of businesses also threatens to cause millions of people to lose their jobs and their income.
Most Egyptians have to do side jobs to replenish their income in a country considered to be among the lowest in terms of pay.
This prompts economists like Professor Abdo to conclude that the cost of this early closure of businesses would exceed the benefits of energy saving.
"Before taking the decision, the government should have set the cost of the early closure of businesses against the benefits to be made from energy saving," he remarked. Searching for alternatives The toll on energy supplies appears to be the tip of the iceberg.
Egypt has already raised fuel prices by 30% , which is reflecting on commodity prices in the market and the livelihoods of tens of millions of poor Egyptians.
The war may impact the Egyptian tourism sector, a major national income contributor and an important employer.
The situation for Egypt can also be even more difficult if the Iran-backed Houthi group decides to attack commercial shipping in the Red Sea and the Bab el-Mandeb Strait, a scenario that can prove catastrophic to the Suez Canal, also another major contributor of national income.
Nonetheless, Egypt's problem appears to be less about energy supply and more about the cash required to get this supply.
During phone talks with US Secretary of State Marco Rubio on 27 March, Egyptian Foreign Minister Badr Abdelatti appealed for economic support so that his country could contain the negative effects of the war.
The economic toll the war can also explain Egypt's frantic efforts to end it.
On 30 March, Egyptian President Abdel Fattah al-Sisi called on US President Donald Trump to stop the war.
"I appeal to you, in the name of humanity and all peace-lovers, to help up stop this war," the Egyptian leader said at the opening of his country's top energy conference and exhibition, EGYPS 2026.
Libya, specialists say, can offer Egypt a partial respite from its current energy crisis, especially given proximity between the two countries and good relations between Cairo and Benghazi. Egypt does not have a pipeline to connect it with eastern Libya, but oil shipments can be sent to Egypt in different ways, the same specialists add, including a short-haul sea route from eastern Libya's export terminals to Egypt's Mediterranean ports or refineries.
The same shipments can also be sent to Egypt overland across the shared border, the same specialists note.
"Getting some crude needs from Libya is a good step on the road to local market stability," Abul Ela said.
He underscored the importance of securing the transport of oil shipments between the two countries, given unstable security conditions in Libya, in general.
"Nevertheless, Libya is a good solution, especially as long as the Strait of Hormuz remains closed, making it difficult for Egypt to get its needs from the Gulf," he added.